American electric vehicle maker Tesla is scouting potential partners in India to set up domestic manufacturing of its rooftop solar panels and help expand its clean energy footprint. As per sources, Tesla plans to license out technology and offer sales expertise to the selected Indian firm.
But Tesla wants its local partner to spearhead production, distribution and installation of the panels across India as it looks to cater to rapidly rising demand on the back of supportive policies. India’s rooftop solar capacity is projected to have an annual growth rate of 47%.
Tesla Leveraging India’s Solar Growth Prospects
Tesla’s solar panel manufacturing plans tie into India’s push towards adopting rooftop solar energy solutions, especially in the residential segment. The sector already comprises nearly 25% of the country’s 11.1GW installed solar rooftop capacity as of December 2022.
The government offers capital subsidies and feed-in tariffs to drive further rooftop solar adoption. Tesla aims to capitalize on these incentives by having an Indian manufacturer produce panels locally at scale.
India Key to Tesla’s Broader Emerging Market Plans
Separately, Tesla has urged India to reduce import duties on EVs to 15% from 60-100% currently to allow it to enter the market. The company could invest $2 billion in India over time if granted temporary duty relief.
Tesla CEO Elon Musk has met PM Modi while union ministers have engaged with Tesla executives frequently, underscoring India’s attractiveness to EVs longer term. Local solar panel manufacturing could supplement its future downstream play.
